Analysis firm Simply Wall St, in two separate analyses, signals skepticism in relation to the Nordic crypto stocks K33 and Safello. Despite huge price gains recently, the analytics firm is skeptical about companies' growth potential.
According to the analyzes, which were published this week, Safello stock has enjoyed a 41% rise in the last month alone. The K33 stock has risen even more strongly, according to the analytics firm, with a 116% gain in just one month. Simply Wall St which has published the two analyses, is a combined analytics and portfolio management firm.
In both analyses, Simply Wall St highlights that companies have low P/S figures, i.e. the ratio of price to expected sales. PS figures are also low compared to comparative companies in asset management. Rather than describe this as a unique buying opportunity, the analytics firm is choosing to question Safello and K33's future growth potential.
In a broad financial market, exposure to crypto could occur in many ways, both directly through the purchase of cryptocurrencies, wrapped in mutual funds, or as ETF or ETF products. What many do not know is that there are also listed stocks in the Nordic countries, which have exposure to developments in the crypto markets. Two of these are Swedish Safello, which is headed by Emelie Moritz (left in the picture) and Norwegian K33, which is also listed in Sweden and which is led by Torbjørn Bull Jenssen (right).
You can read below the main points from the Safello and K33 analyzes of Simply Wall St.
Safello Group AB (publ) (STO:SFL) shares have continued their recent momentum with a 41% increase just over the past month. The latest month ends off a massive 128% increase over the past year.
But the price rise does not tell the whole story, believes Simply Wall St in a recent analysis.
Even after such a large price increase, Safello Group can still send very positive signals at the moment with its price-to-sales (or “P/S”) figure of 0.2x, as almost half of all companies in the capital markets industry in Sweden have P/S numbers greater than 2.9. However, it is not wise to just take P/S at face value as that could be an explanation as to why it is so limited.
Looking ahead, revenue is expected to grow by 5.0% annually for the next three years according to the only analyst who follows the company. That looks set to be substantially lower than the 15% annual growth forecasted for the wider industry.
With this in mind, it is clear why Safello Group's P/S figures lag behind industry competitors. Clearly, many shareholders were not comfortable holding on to their shares while the company is potentially aiming for a less successful future.
You will find whole Safello analysisn here.
Investors are still not entirely convinced about K33 AB's earnings despite 116% price rise. This is what Simply Wall St writes in a recent analysis.
K33 shares, listed in Sweden, have continued their recent momentum with a 116% gain in just one month. The annual gain comes to 252% after the recent rise, causing investors to wake up and pay attention.
Even after such a large price increase, K33's price-to-sales (or “P/S”) ratio of 1.1x can still look like a buy compared to the software industry in Sweden, where about half the companies have P/S ratios above 2.3x and P/S above 5x is fairly common. Still, the low P/S may be for a reason and requires closer examination to determine if it is justified.
Compared to the industry, which is only expected to deliver 18% growth in the next 12 months, the company's momentum is stronger based on recent medium-term annual revenue results. In light of this, it is curious that K33's P/S is below the majority of other companies. It looks like most investors are not convinced that the company can sustain its recent growth rates.
Simply Wall St therefore writes: “We are very surprised to see K33 currently trading at a much lower than expected P/S, since the company's three-year growth is higher than the broader industry forecast. Seeing strong revenue with faster than industry growth, we assume that there are some significant underlying risks to the company's ability to make money, putting downward pressure on the P/S ratio. In any case, price risk appears to be very low if recent medium-term earnings trends continue, but investors seem to believe that future earnings could experience a lot of volatility.”
You will find the entire K33 assay here.
Analysis firm Simply Wall St, in two separate analyses, signals skepticism in relation to the Nordic crypto stocks K33 and Safello. Despite huge price gains recently, the analytics firm is skeptical about companies' growth potential.
According to the analyzes, which were published this week, Safello stock has enjoyed a 41% rise in the last month alone. The K33 stock has risen even more strongly, according to the analytics firm, with a 116% gain in just one month. Simply Wall St which has published the two analyses, is a combined analytics and portfolio management firm.
In both analyses, Simply Wall St highlights that companies have low P/S figures, i.e. the ratio of price to expected sales. PS figures are also low compared to comparative companies in asset management. Rather than describe this as a unique buying opportunity, the analytics firm is choosing to question Safello and K33's future growth potential.
In a broad financial market, exposure to crypto could occur in many ways, both directly through the purchase of cryptocurrencies, wrapped in mutual funds, or as ETF or ETF products. What many do not know is that there are also listed stocks in the Nordic countries, which have exposure to developments in the crypto markets. Two of these are Swedish Safello, which is headed by Emelie Moritz (left in the picture) and Norwegian K33, which is also listed in Sweden and which is led by Torbjørn Bull Jenssen (right).
You can read below the main points from the Safello and K33 analyzes of Simply Wall St.
Safello Group AB (publ) (STO:SFL) shares have continued their recent momentum with a 41% increase just over the past month. The latest month ends off a massive 128% increase over the past year.
But the price rise does not tell the whole story, believes Simply Wall St in a recent analysis.
Even after such a large price increase, Safello Group can still send very positive signals at the moment with its price-to-sales (or “P/S”) figure of 0.2x, as almost half of all companies in the capital markets industry in Sweden have P/S numbers greater than 2.9. However, it is not wise to just take P/S at face value as that could be an explanation as to why it is so limited.
Looking ahead, revenue is expected to grow by 5.0% annually for the next three years according to the only analyst who follows the company. That looks set to be substantially lower than the 15% annual growth forecasted for the wider industry.
With this in mind, it is clear why Safello Group's P/S figures lag behind industry competitors. Clearly, many shareholders were not comfortable holding on to their shares while the company is potentially aiming for a less successful future.
You will find whole Safello analysisn here.
Investors are still not entirely convinced about K33 AB's earnings despite 116% price rise. This is what Simply Wall St writes in a recent analysis.
K33 shares, listed in Sweden, have continued their recent momentum with a 116% gain in just one month. The annual gain comes to 252% after the recent rise, causing investors to wake up and pay attention.
Even after such a large price increase, K33's price-to-sales (or “P/S”) ratio of 1.1x can still look like a buy compared to the software industry in Sweden, where about half the companies have P/S ratios above 2.3x and P/S above 5x is fairly common. Still, the low P/S may be for a reason and requires closer examination to determine if it is justified.
Compared to the industry, which is only expected to deliver 18% growth in the next 12 months, the company's momentum is stronger based on recent medium-term annual revenue results. In light of this, it is curious that K33's P/S is below the majority of other companies. It looks like most investors are not convinced that the company can sustain its recent growth rates.
Simply Wall St therefore writes: “We are very surprised to see K33 currently trading at a much lower than expected P/S, since the company's three-year growth is higher than the broader industry forecast. Seeing strong revenue with faster than industry growth, we assume that there are some significant underlying risks to the company's ability to make money, putting downward pressure on the P/S ratio. In any case, price risk appears to be very low if recent medium-term earnings trends continue, but investors seem to believe that future earnings could experience a lot of volatility.”
You will find the entire K33 assay here.
